Property is free and clear. Or should we each just file a Sch E using 1/2 of income and expenses? Property is in TX. I live in neighborhood and brother is out of state
I practice in Washington and a lawyer in Texas will be able to give specifics, but there are many business entities that would benefit you and your brother for liability and tax reasons. You can research the different forms of business entities online and get an idea which ones will work for you and your brother.
If you are renting the house for profit, you have a business. The real question is whether you need to create an entity in order to protect yourself from liability. While a solid lease and insurance are probably more important, the creation of an entity can be an important component in protecting yourself from liability. It will also allow you to address now how the business will be ended in the future and what will happen if one of the partners wants out of the business.
